Are Student Loans Forgiven if School Loses Accreditation?

Discussion in 'Accreditation Discussions (RA, DETC, state approva' started by rcox81, Oct 13, 2011.

  1. rcox81

    rcox81 New Member

    I was thinking about enrolling in a program at Trident University and now I see that they are in danger of losing their accreditation. I looked around to see what would happen to student loans taken out at the school if this does happen (are they forgiven?)

    There was conflicting information, from what I saw. Some sources said yes, others said no.

    Does anyone here have a definitive answer for this?

    TEKMAN Semper Fi!

    Wow, it seems that you're looking for a FREE education through the American Taxpayers. Anyway, I don't think so...the loan does not have to do anything with the school. Federal Loan and Private Loan; Private Loan, it does not matter if the school is accredited or unaccredited. Once you sign the loan agreement, you have to pay it back regardless you graduate or not. In the same token, the Federal loan is similar; but require you to enroll into an accredited institutions, which entitle to title 4.
  3. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    Personally, given what you know I'm trying to figure out why you're still thinking about enrolling there.
  4. mcjon77

    mcjon77 Member

    No, they are not forgiven. In fact, I can think of one or two instances in which a flight school closed down (taking the student's prepayments with them) and the students were left saddled with debt for training thy never fully received.

    Choose Wisely.
  5. nj593

    nj593 Member

    I disagree that you should do this. If they are losing accreditation means their educational degree sucks anyway. Might be an easier degree but is a employer going to even acknowledge it also. Just two things to consider. Now, for your actual question here is a link that shows all the manners in which loans are forgiven. So for the one poster that said if the school closes his friend might have been just stuck with the payments or they attended almost the entire time. But there is a section on school closure. Loan Cancellation/Forgiveness/Discharge Conditions: Detailed Explanations

    good luck
  6. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    Accreditation can be lost for all sorts of reasons. Academics are one possibility, but I think it's more common for institutions to lose accreditation for financial difficulties. (I'm not saying that's the case here, just that it's a misconception that accreditation is solely concerned with academics.)
  7. Cyber

    Cyber New Member

    One way your loans can be discharged or cancelled is when the school closes (before student could complete program of study) or false loan certification.

    Loosing accreditation (I personally do not think they will loose it) does not mean Trident will close/shut down, so any loans taken out to attend Trident will not be discharged or cancelled (should they loose it). Any sane person, in my opinion, should stay away from Trident for now, except maybe Trident offers some type of huge tuition discount to offset the risk/trade off.
  8. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

  9. Cyber

    Cyber New Member

    lose accreditation....
    losing accreditation.....
    Thanks for the correction!
    Last edited by a moderator: Oct 15, 2011
  10. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    Heh, I know it usually comes across as bitchy to mention spelling on a forum, and I also realize that not everyone is a native user of English, a tricky language with absurd spelling irregularities. The world may consider this license to correct me similarly. :)
  11. Kizmet

    Kizmet Moderator Staff Member

    The fact that our op has not responded within 3 days must surely demonstrate that he's a troll and as such, is best ignored.
    Let's not waste our time.
  12. dl_mba

    dl_mba Member

    If you take a loan, you are on the hook Baby.

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